Context of 'December 8, 2009: Fitch Cuts Greece’s Rating'

After announcing another record loss for the first quarter of 2008 (see January-March 2008), insurance giant AIG says it needs to raise $12.5 billion to protect against further possible writedowns due to problematic investments related to the US housing market. In addition, Standard and Poor’s and Fitch Ratings cut AIG’s credit rating after it announces the loss and the fact that it made more than $15 billion in first-quarter writedowns tied to credit default swaps and mortgage-backed securities. [Bloomberg, 9/16/2008]

The ratings agency Standard & Poor’s puts Greece’s credit rating, currently A-, on negative watch with a view to downgrading it. [Reuters, 3/3/2010]

Fitch Ratings cuts its assessment of Greek government debt to BBB+ and says that the outlook for the country is negative. Fitch had previously cut its rating for the debt to A-, when the Greek government revealed that its budget deficit was higher than expected. This reduction is the first time in 10 years a ratings agency has put Greece below the A investment grade. [Reuters, 3/3/2010]